ESS is trying to solve a critical problem with renewable energy: How to store energy from wind and solar installations when the wind isn’t blowing and the sun isn’t shining.
The company’s proposed solution is a long-duration energy storage batteries made of iron, salt and water, which are much cheaper and more readily available than the elements used in batteries today, like lithium and cobalt. Its early momentum attracted $57 million in investments from powerful backers like Bill Gates and Softbank, CEO Eric Dresselhuys told CNBC.
“There have been very few solutions for this long duration up until now, and it’s largely driven from the fact that we didn’t rely on energy storage as a major solution for hardening the system,” said Dresselhuys, who became the CEO of ESS this year after decades of energy and technology executive experience.
The company launched in the garage of co-founders Craig Evans and Julia Song in Portland, Ore., in2011 (they’re a married couple, in addition to being business partners), then moved to the Portland State Business Accelerator before expanding to its current 200,000-square-foot headquarters.
The company is backed by Bill Gates’ clean energy investment firm Breakthrough Energy Ventures, SB Energy (a wholly owned subsidiary of SoftBank) and multinational chemical company BASF, among other investors. The SPAC comes through a reverse merger with ACON S2 Acquisition Corp., run out of private equity firm Acon Investments.
ESS has not recorded any revenue yet, according to financial filings dated Sept. 8, but Dresselhuys says it has shipped product to customers, including TerraSol Energies in Pennsylvania and Siemens-Gamesa in Denmark; investor documents claim several other unnamed utilities as customers also. Also, ESS has orders in the pipeline from SB Energy and Enel Green Power España.
The company lost $245.3 million in the first six months of 2021, but only $18.4 million were operating losses (the remainder was due to losses on reevaluations of warrant and derivative liabilities). Operating losses were $17.4 million for 2021, and it expects to record its first profit in 2023.
Iron, salt and water: Safe, readily available materials
The big breakthrough for ESS is a long-duration battery built from readily available materials, explained Carmichael Roberts, a co-chair of the investment committee at Breakthrough Energy Ventures In a battery, the electrolyte is the liquid medium that connects the two ends of a battery, the anode and the cathode.
“The flow battery is cheaper, safer and has better operational life than conventional lithium-ion storage,” Roberts said.
Making a battery out of iron, salt and water means “there’s no toxicity, the technology we build doesn’t start fires or doesn’t blow up in fire,” said Dresselhuys.
Also, ESS batteries do not have lithium or cobalt, two common elements in batteries that are being impacted by supply chain crunches.
“Both are in potentially short supply globally and none are produced in the U.S.,” said Jesse Jenkins, an assistant professor at Princeton University who specializes in the energy grid.
“Lithium is less of an issue in the long run, as long as we recycle lithium ion batteries, but there may be some short-run price increases as production ramps up to match battery demand for EVs,” Jenkins said.
“Cobalt is a bit trickier and has come under fire for some of the supply chain relying on quote unquote ‘artisanal mines’ in Africa, which employ forced labor, and child labor in some cases, with people digging out cobalt by hand and very, very harsh conditions,” Jenkins said.
Neither does ESS use vanadium, a chemical element used in some flow battery technology. While promising, Dresselhuys says it’s too expensive to be meaningful.
“It’s one thing to make something work, and that can be very difficult. But it has to work cost effectively to be viable as a system because of the scale we’re talking about,” he said.
How the battery works: ‘The elegance is the simplicity’
Visualize a sandwich, said ESS’s business development lead, Hugh McDermott. The ESS battery technology is a stack of carbon plates with salt water with iron flowing through each layer.
Iron comes out of the salt water solution and sticks to one side of the plates. When the polarity of the plates is changed, the iron dissolves back into the water solution.
From a battery management control system, the flow of the ions can be switched, thereby also switching the flow of electricity onto and off the grid.
ESS Inc’s iron flow battery “stack.”
Image courtesy ESS Inc.
The idea of a iron flow battery has been around since the 1970s, Dresselhuys said. But there were technical issues that scientists hadn’t solved.
For example, early iterations of the iron flow battery technology would work for a while, but the electrolyte fluid would become imbalanced, build up on the battery, and the battery would become ineffective over time. To fix this, ESS developed a proton pump, which Dresselhuys says “allows the system to keep itself in balance throughout all of those charges and discharges so that the electrolyte is entirely clean.”
“The elegance is the simplicity,” said Rich Hossfeld, co-CEO at SB Energy and a board member at ESS. (SB Energy is not only an investor, but also a customer.)
But it took a lot of research and development to get a simple solution to work. ESS has been working on research and development for a decade. The proton pump was a really key breakthrough for the company, but one of many.
“There’s a very large intellectual property moat around the core technology and that will make it very difficult for other competitors to build a battery that is similar to ESS’ battery,” Hossfeld told CNBC.
ESS batteries can store energy for 4 to 12 hours, whereas the lithium batteries in cars are typically capped between two and four hours, Dresselhuys said.
To go above four hours of energy storage with lithium-ion batteries requires increasing the number of lithium-ion cells, Hossfeld told CNBC. ESS, on the other hand, can just add more water, iron and salt to a bigger tank of its stack-sandwiches.
“The way to think about ESS cost-wise is they are cost parity with lithium ion at four hours, and about half the cost above that, which we think creates a big advantage for them,” Hossfeld told CNBC.
Another key to the ESS iron-flow technology is its resilience.
“Capacity stays the same between year one and year 20,” Hossfeld said. Anyone who has a cellphone knows that is not the case for lithium-ion batteries. “You open it up, it comes out of the case, right now it will give you 10 hours. We all know it doesn’t give you 10 hours in a year, right?”
Energy centers are co-located with a wind or solar farm, allowing the batteries to charge up during the day when the sun is shining and then discharge in the late afternoon when there is typically a bump in energy demand.
SB Energy’s first installation of ESS Inc batteries in Davis, Calif. SB Energy is an investor in ESS and also a customer. These are batteries SB Energy purchased.
Photo courtesy SB Energy
Similarly with wind. “You can store four, eight, 10 hours of wind plants in the middle of the night and then discharge it during the day as needed,” Hossfeld told CNBC. “We look at ESS as a really good complement to that daily cycling between wind and solar.”
The Energy Warehouse, the only ESS product that exists so far, is the size of a shipping container, 40 feet long and 8 feet wide.
“That container holds 500 kilowatt hours of energy. That’s roughly the energy that you would need to power 20 to 30 homes, depending on where you are in the country,” McDermott told CNBC.
Four ESS Inc batteries
photo courtesy ESS Inc
ESS is also building a product called Energy Centers intended for utilities and independent power producers — for instance, businesses that own large solar farms who then sell that power to the grid.
For these kinds of larger customers, ESS will use similar battery technology, but the battery modules will be contained together in a building. Customer trials are expected to begin in 2022.
The big challenge: Getting an iron flow battery to scale
While iron-based batteries are a well-known technology, the big challenge has been getting them to scale.
“Iron based chemistries for flow batteries have a long and storied history, rightfully so because in theory they have some of the lowest theoretical costs possible. On paper these systems scale quite well,” explained Dan Steingart, Associate Professor of Chemical Metallurgy at Columbia University
But the reality has been quite different.
“We have not seen widespread adoption of this class of batteries and its cousins because of last-mile engineering challenges that have in the past added unacceptable capital and operating costs when compared to other available technologies,” Steingart told CNBC.
Flow batteries depend on pumps and membranes that are highly technical. “Think a kidney, writ very large, working 10,000 times harder than it has to, all the time,” he said. “It has been very difficult to have these, in practice, operate in a reliable manner without significant ancillary systems (that make the system more expensive upfront) or maintenance calls (which increase running costs).”‘
That said, Steingart notes the “sufficient capital” ESS has raised to validate its solutions to these challenges.
“The iron flow battery technology looks very promising as it is safe, environmentally friendly, uses non-toxic materials that can be sourced in the US, and doesn’t degrade over time and over multiple cycles,” Jan Pepper, the CEO of Peninsula Clean Energy, told CNBC.
Peninsula Clean Energy, a community energy buyer and the official power provider for San Mateo County in Calif., has not worked with ESS directly, but it’s trying to deliver cost-competitive 100% renewable energy on a 24/7 basis by 2025. Pepper knows that energy storage will help meet those goals.
“The current challenge with iron flow batteries is the cost,” Pepper said. “If companies like ESS can bring the cost down for their technology, then they and others will be able to make a meaningful impact in decarbonization efforts and help organizations like Peninsula Clean Energy meet our ambitious goals.”
As Steingart told CNBC, “A goal I use is in my lab for long duration energy storage: The battery has to cost about the same price as dog food per pound and last forever with little intervention.”
That said, if ESS can do what its investors think it can, “the successful execution of this chemistry would be a significant milestone for grid scale energy storage,” Steingart told CNBC.
Hyundai Motors is recalling 145,235 EVs and other “electrified” vehicles in the US, citing concerns about a loss of driving power, the National Highway Traffic Safety Administration (NHTSA) said on Friday.
The NHTSA announced this morning that the recall affects selected IONIQ 5 and IONIQ 6 EVs, as well as certain luxury Genesis models, including the GV60, GV70, and G80 electrified variants, from the 2022-2025 model years, Reuters reported.
It looks like the issue stems from “the integrated charging control units in these vehicles, which may become damaged and fail to charge the 12-volt battery. This malfunction could lead to a complete loss of drive power, posing safety risks for drivers,” the NHTSA stated.
If you’re an owner of one of these Hyundai models dating 2022-2025, stay tuned. Hyundai has not yet provided a timeline as to when affected vehicles will be repaired.
To make that happen, the company’s dealers will inspect and replace the charging unit and its fuse if necessary, NHTSA said. Free of charge, of course.
Importantly, no crashes, injuries, fatalities, or fires due to this issue have been reported in the US, Hyundai reported.
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Tesla announced that ‘Actually Smart Summon,’ its autonomous driving feature that enables moving its vehicles without anyone inside over short distances, is now being launched in Europe and the Middle East.
The automaker’s Full Self-Driving suite of features has been limited in those markets due to regulations and Tesla’s focus on making them work in North America first.
Actually Smart Summon is the vision-only version of Tesla’s “smart summon” feature, which was released years ago on Tesla vehicles with ultrasonic sensors.
When Tesla transitioned away from ultrasonic sensors, Smart Summon was one of the missing features that Tesla had yet to adapt to the vision-only (cameras and neural nets) system.
However, that’s only in North America where Tesla focuses its Full Self-Driving (FSD) development, the feature package that includes Actually Smart Summon, also referred to as ‘ASS’.
Most of Tesla’s other markets, including Europe, don’t have the same capabilities under the Full Self-Driving package. That’s partly due to regulations, but Tesla also focuses on making the features work on North American roads first.
Now, Tesla has announced that its Actually Smart Summon feature is launching in Europe and the Middle East:
The feature can only be used on private roads, like parking lots and driveways. Most people have used it to bring their vehicles parked in a large parking lot to them as they exit a store or restaurant. However, the vehicle moves quite slowly under the feature and the owner needs to keep an eye on it at all time and be ready to cancel the summon as Tesla doesn’t take any responsibility for accidents caused by using Actually Smart Summon., like all other FSD features.
Therefore, most people I know who have the feature, myself included, tried once or try to see or impress some friends who have never seen a car move without anyone inside and then stopped using it.
The feature’s main useful use-case is for people with extremely tight parking spots. It enables them to exit the vehicle before it is in its final parking spot and then move the car in and out remotely.
However, that has been the case for years with the regular Smart Summon, as you generally don’t need the vehicle to handle complex parking lots. You mostly need it to move a few feet forward or backward.
US Automakers are planning to ask Mr. Trump to retain President Biden’s EPA exhaust rules, in the face of signs that Mr. Trump might try to reverse them. If the rules are reversed, it would cost Americans hundreds of billions of dollars and thousands of deaths per year.
Interestingly, this is the opposite of what big auto did the last time a reality TV show came to the White House – signaling that they have perhaps learned their lesson this time ’round.
First, some history.
In the middle of the 20th century, the effects of human activity on the atmosphere became readily apparent. Certain cities – with Los Angeles among the forefront – were choked by smog, and it was soon found out that vehicle pollution was the primary reason for this smog.
Since Los Angeles was one of the most smog-choked cities, California led the way on clean air regulation, creating the California Air Resources Board in 1967 (under then-Governor Ronald Reagan).
The federal government gave California special dispensation to set stricter regulations than the rest of the country, in recognition that it had a unique smog problem in its primary metropolis. California has retained this dispensation, in the form of a “waiver,” since then. And other states can follow California’s rules, but only if they copy all of the rules exactly.
Thus, there have been two separate sets of clean air regulation in this country since then – the federal rules, and then the “CARB states” which follow California’s rules.
In 2012 that finally changed, when President Obama’s EPA negotiated with California to finally harmonize these standards and also implement higher fuel efficiency nationwide. This would have been a huge boon for both industry and consumers, saving money and giving regulatory certainty to the auto industry.
But then, in 2016, the candidate who got the 2nd most votes in the presidential election was headed for the White House. And automakers responded by immediately lobbying to torpedo these standards, even before inauguration.
Now, you might think that asking a profoundly ignorant individual, who ended up staffing the EPA with bought-and-sold science deniers (huh, that would never happen again would it?), to change rules which had already been set through years of negotiation and lobbying was not a great idea. And you’d be right.
Not long after automakers had the dumb idea to ask an idiot to fix something that wasn’t broken, that idiot went and broke things further, fracturing the agreement between California and the federal government and ensuring less regulatory certainty for automakers.
But it was too late, and we are now back in the era of disparate regulatory regimes – something which John Bozzella, head of the Alliance for Automotive Innovation (formerly called Global Automakers), keeps complaining about these days, despite having lobbied for exactly this in the first place.
The US EPA and California are still not fully harmonized, but both released recent new standards which do have somewhat similar targets. If a manufacturer builds towards one set of rules, they’ll probably not be too far off from meeting the other.
So in the end, we did get better emissions regulations and California has continued to push forward with clean air regulations, thus signaling a failure on the part of Mr. Trump to cause the long term harm to Americans that he and his oil industry solicitors so desperately seem to desire.
The most recent EPA standards, finalized in March (after being softened at the auto industry’s request), do not mandate any particular powertrain, but rather require steep emissions cuts – and EVs are the easiest way to achieve lower emissions.
Notably, Tesla lobbied in favor of making this last set of standards stronger, and they also lobbied against ruining the Obama/CA standards in 2016 – being one of very few automakers who were on the correct side of that discussion.
Despite that the President Biden EPA’s rules do not mandate any particular powertrain, Mr. Trump, in his usual ignorance, has said that he will end the nonexistent EV mandate. And now that he has received more votes than his opponent for the first time (after three tries, and despite committing treason in 2021 for which there is a clear legal remedy), it looks like the upcoming EPA might be directed to end these emissions cuts and fuel/health cost savings for Americans.
But in this instance, it sounds like the automakers might actually do the right thing for once, and ask the government not to do any rollbacks, and instead let them continue on with the plans without disruption from a convicted felon who seems determined to cede a US EV manufacturing boom back to China.
Detroit’s Big Three automakers – GM, Ford and Stellantis – are all reportedly trying to figure out how to ensure that these rules stay in place. The mentality is that constantly changing regulations are not beneficial for companies – particularly in the auto realm, where models take on the order of 7 years to plan and execute. Long-term planning is important for the hundreds of billions in manufacturing investment that EVs have attracted in the US during Biden’s EV push.
These attitudes are notable, given that this is not what automakers did in 2016/2017. That time, they compulsively pushed for fewer regulations, and now they are asking for regulations to remain in place.
It’s further notable that Tesla CEO Elon Musk, whose company lobbied strongly in favor of emissions cuts and makes more use of the federal EV tax credit than any other company, is now allied with the very entity that’s looking to harm EVs. It seems that we have entered opposite world.
On the other hand, a former reality TV host – tagged along with by the CEO of the company that has sold more electric cars than any other – seem determined to kill electric cars, despite the harm that would cause to Americans’ pocketbooks and health insurance premiums. And that famously vindictive character may be even more spurred towards this harmful course of action after failing in his efforts the first time.
Who ya got?
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